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Cybersquatters are siphoning away increasing numbers of users from the websites of businesses large and small. Using variations on trademarked names, cybersquatters may lure prospective customers to pornographic websites, malware sites, sites hawking counterfeit goods, or pay-per-click advertising sites, some of which lead viewers to competitors' products and services.

They're doing so right under the noses of trademark holders, but many companies remain blissfully ignorant of what's going on -- or how it can affect their business. In addition to losing revenue from customers who never reach their true Web sites, companies may find that cybersquatters have irrevocably damaged their reputations.

While cybersquatters have been around almost as long as the Web itself, the problem is getting worse. What should you do to protect your business? We asked for tips from legal professionals, as well as from experts at brand-abuse monitoring vendors and companies such as Lego and InterContinental Hotels Group (IHG) that have successfully fought cybersquatters. Here's what they had to say.

1. Establish a policy to deal with the problem

Take the time to create a detailed policy, then follow up with surveillance and policing, says Peter Kjaer, an attorney at Lego.

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